When Crispcap spoke to Frank this month, business owner of Jaseda Construction, he said that the company was performing well.

The London-based construction business UK was turning over approximately £100,000 each month and the contracts kept coming in. But with more success comes more overhead expenses, and Frank began to feel the pinch of a tighter cash flow.

He needed more staff to support the projects that were coming his way, but he had thousands of pounds tied in unpaid invoices. If he were to subcontract more workers, he needed funds to cover their wages and get the jobs underway.

Frank sought advice from Crispcap about getting a business loan to support his recruitment roadblock.

Frank’s Construction Business UK: How Did It Start?

Frank had worked as a subcontractor for years. He’d been on large-scale construction projects that spanned many months and worked under a variety of management.

After working with surveyors and project managers, he learned important skills for running successful construction work of all sizes. It didn’t take long before Frank wanted to start his own business venture in the same industry.

His perspective as a subcontractor taught him what employees value most from their bosses. He recognised that clear payment terms with subcontractors were a crucial aspect of running a business. By keeping workers satisfied, construction projects would stay on schedule too.

Before long, Frank founded Jaseda Construction and assembled a team of trusted officers, managers, and executives. They began sourcing their own work using the network of contacts they’d built in their professions.

Only a year later and Jaseda are turning over £100,000 and looking for new ways to manage their increasing workload.

What Challenges Were They Facing Before Getting a Business Loan?

Jaseda needed funding to support new contracts that were coming in. This included materials and equipment for the jobs.

But more than anything, the construction business UK needed a loan to hire more subcontractors such as plasterers, carpenters, and electricians. They form a crucial part of Jaseda’s service.

Getting Paid as a Contractor

Whilst every payment schedule is different with each customer, contractors like Jaseda have to wait up to 60 days to get paid after a project.

An application for payment is the most common payment method for construction companies in the UK. It involves them requesting stage payments from the client for completed aspects of the work. This is supposed to financially support businesses over long projects and ensure they meet deadlines.

However, the client can dispute and reject applications when they inspect the work that’s been completed. What’s more, disruptions from the weather, supply chain, or planning permission can cause delays to the job. This can cause contractors to not receive their payments on time.

These factors can create an unpredictable cash flow for construction companies and stunt their potential to grow.

Hiring Subcontractors

In unpredictable circumstances like these, hiring subcontractors can be a big challenge for construction companies.

Subcontractors get paid by either submitting invoices (usually 30-net) or an application for payment. But whatever the structure is, it’s very difficult for construction businesses to agree on payment terms when their own cash flow is uncertain.

Without a steady cash flow, they risk late payments to subcontractors and delaying the project entirely. This prevents many business owners from hiring more staff and growing their operation.

How Has a Business Loan Helped the Company?

Frank got in touch with Crispcap to check his eligibility for an unsecured business loan using our 30-second form. We approved him for a loan amount of £3,700 within 24 hours of his application.

Since then, Frank has used the finance to support his hiring process. He has hired more subcontractors for a range of projects to keep the business moving forward.

When it comes to paying the wages of these workers, Frank rests easy knowing that he has funding in place to pay them on time and in full. No matter if his invoices are paid, the business loan helps pay his team and keep things running.

Frank also set some of the unsecured loan aside to cover expenses for materials and equipment for upcoming projects.

What Is Jaseda’s Plans for the Future?

Frank is thrilled with how a business loan has helped his operation grow, and he intends to get more funding to push it further.

Now that he’s been approved and made regular repayments, it’s likely that he’ll be eligible for longer loan terms and higher amounts soon.

He plans to hire more subcontractors to work on his residential and commercial projects across the UK.

He’s also looking into different ways that he can market the construction business UK. This includes putting considerable spend into social media and pay-per-click adverts. This should generate fresh leads instead of solely relying on work through word of mouth.

As a small business owner, he feels supported knowing he has the staff and funding to book in more projects than ever before.

Getting a Loan for a Construction Business UK

You can apply for a business loan in 30 seconds with our free eligibility checker. Once you’ve submitted your basic business information, we’ll be in touch to discuss the finance options available to you.

You also also use our business loan calculator to get an idea of repayment terms and amounts.